INDUSTRIAL ALLIANCE SECURITIES BROADENS PENSON'S CLEARING SERVICES MANDATE FOLLOWING NEW ACQUISITIONS

Extended Introducing/Carrying Broker Agreement Cements Penson’s Ontario Client Base and Provides First Foothold in Eastern Canada

Montreal, 3 May 2005 – Penson Financial Services Canada, Inc., a leading provider of execution, clearing, custody and settlement services for the global securities market, and the largest independent clearing firm in Canada, today announced it has broadened its introducing/carrying broker agreement with Industrial Alliance Securities (IAS). The increased mandate from the brokerage arm of Industrial Alliance Insurance and Financial Services, Canada’s fifth largest life insurance company, comes into effect in Q2 and will cover newly acquired brokerage operations, Lynch Investments and KingsGate.

Established in 2002 and a Penson client from the beginning, IAS is already a recognized leader in Quebec. The rapidly growing brokerage firm is aggressively expanding its registered reps and brokerage network across Canada. IAS’s December 2004 acquisition of Lynch Investments, a small firm in Nova Scotia, represents its own – and Penson’s – first foothold into the Atlantic region. IAS’s recent acquisition of Toronto-based Kingsgate, in January 2005, expands the brokerage firm’s country-wide coverage and further solidifies Penson’s offering in Ontario.

Gaétan Plante, President, Industrial Alliance Securities, comments: "Outsourcing our clearing operations to an independent, specialist supplier is intrinsic to our future growth and success. Penson enables us to stay focused on core competencies and respond to industry changes and business developments quickly and efficiently. Penson’s independent status also allows us the liberty to recruit new reps from the banking sector at large."

The expanded carrying broker agreement will also enable Lynch Investments and KingsGate to increase their product offerings in line with those available from IAS. Penson’s flexible, fully-disclosed clearing services will support stocks, bonds, mutual funds and options throughout IAS’s operations.

Rick Ness, President, Penson Financial Services Canada Inc., comments: "As IAS continues to grow in product offerings and geographically throughout Canada, the need for efficient, cost-effective and flexible back office securities processing becomes increasingly important. Since IAS’s inception in 2002, we have assisted with a number of acquisitions. Thanks to our long-term experience in this sector, good planning and a tight working relationship, conversions have always gone smoothly. Penson will continue to work with IAS to support and promote future growth."

Daniel P. Son, President, Penson Worldwide Inc., comments: "Penson’s impressive Canadian client base continues to enjoy steady growth. The extension to the Industrial Alliance Securities mandate not only increases our exposure to the eastern Canadian markets but is further proof of our ongoing commitment to deliver superior services backed up by leading edge technology and expert customer care. In parallel to our dedicated focus on customer service to our existing client base, Penson will continue its push for new business across the country with a view to cement our foothold on a national scale."

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